Copy.
.    Hp Colonial Office,
(A 6980/21/45)
Downing Street,
/ S.W.I.
86410/39
10 October, 1939.
Dear Balfour,
Please refer to my letter of the 18th September
about the Pacific Islands.
I now enclose a copy of a despatch from the High
9th August,     Commissioner for the Western Pacific, stating that for
1939.
various reasons it is proposed to establish a branch of
the Gilbert and Ellice Islands postal service on Canton
Island.     As you know, the Phoenix Islands are included in
the Gilbert and Ellice Islands for administrative purposes.
Do you think it necessary to consult the American
Government over this proposal?     There seem to us to be two
considerations.     In the first place, the question arises
whether the establishment by the British authorities of a
British Post Office on the Island can be held to be a detail
of the "special joint ad hoc regime", which ought to form the
subject of consultation between the two Governments under
paragraph 3 of the Exchange of Notes of the 6th April, 1939.
It seems to us doubtful whether it is necessary to take this
view. Wk joint Anglo-American Post Office, with the consequent
complications about keeping accounts, division of profits,
currencies, etc., would obviously be unsuitable for this
little Island, and it would always be open to the Americans
|| to have their own Post Office, if they want one.
The
J. BALFOUR, ESQ
5
The other consideration is the more general one
that, although the administration of the Island will in
practice, as there is to he no colonisation, he left entirely
to the American authorities, so far as we can see at present,
the time may come when we may wish to exercise our rights
under the Bxchange of Notes, either to object to what the
Americans are doing or to obtain their consent to activities
of our own, and that it is therefore advisable to remind them
that we retain an active interest in the Island and expect
ourselves to be consulted on appropriate occasions. One
way of keeping our rights and interests before the Americans
is to consult them ourselves whenever we have a reasonable
excuse for doing so,
I suppose it is conceivable that the Americans,
if consulted, might object to a British Post Office on
the ground that practically all the postal revenue which
would be derived from any Post Office in Canton must be
American in origin, and that American revenues ought to have
the benefit of it.     The answer would be that they can have
an American Post Office, if they wish.     Talcing everything
into consideration the view which we are inclined to take in
the present case is that it is unnecessary to consult the
Americans, and that our obligations will be sufficiently
discharged by informing them that a British Post Office is
being instituted in the Island as a branch of the Gilbert
and Ellice Islands Post Office.     If this is agreed, we will
tell the High Commissioner that he can go ahead and notify
you officially in order that you may inform the United States.
You will see that the High Commissioner is asking
for a telegraphic reply, so perhaps you will deal with this
as soon as possible.
I am sending a copy of this letter to Herbertson,
Jarrett and Wiseman for any views they may have.
Yours sincerely»
(Signed)     A.B. Acheson